The following information is for DE Ltd. for the last financial year Current Ratio: 5...
The following information is for DE Ltd. for the last financial year
Current Ratio: 5
Quick Ratio: 1.8
Inventory Turnover: 7
Total Current Assets: $340,000
Cash: $43,000
COGS = 80% of Sales
Required:
- What were the total sales for the year?
- How many day’s sales were outstanding in Accounts Receivable?
Homework Answers
Current ratio = 5
Current assets / Current liabilities = 5
$340,000 / Current liabilities = 5
Current liabilities = $68,000
Quick ratio = 1.8
(Current assets - Inventory) / Current liabilities = 1.8
($340,000 - Inventory) / $68,000 = 1.8
$340,000 - Inventory = $112,400
Inventory = $217,600
Inventory turnover = COGS / Inventory
7 = COGS / $217,600
COGS = $1,523,200
COGS = Sales * 80%
Sales = $1,523,200 / 80%
= $1,904,000
Days sales outstanding = 365 / Inventory turnover
= 365 / 7
= 52 days
Add Answer to:
The following information is for DE Ltd. for the last financial
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Current Ratio:
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The following information is for ABC Ltd. for the last financial year Current Ratio: 5...
The following information is for ABC Ltd. for the last
financial year
Current Ratio:
5
Quick
Ratio:
1.8
Inventory Turnover: 7
Total Current Assets: $340,000
Cash:
$43,000
COGS = 80% of Sales
Required:
What were the total sales for the year?
How many day’s sales were outstanding in Accounts
Receivable?
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Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance...
Financial data for Joel de Paris, Inc., for last year follow:
Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance
Assets Cash $ 137,000 $ 128,000 Accounts receivable 334,000 480,000
Inventory 578,000 480,000 Plant and equipment, net 881,000 882,000
Investment in Buisson, S.A. 398,000 430,000 Land (undeveloped)
247,000 252,000 Total assets $ 2,575,000 $ 2,652,000 Liabilities
and Stockholders' Equity Accounts payable $ 384,000 $ 340,000
Long-term debt 984,000 984,000 Stockholders' equity 1,207,000
1,328,000 Total liabilities and stockholders' equity $...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance...
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance Sheet
Beginning
Balance
Ending
Balance
Assets
Cash
$
129,000
$
132,000
Accounts receivable
340,000
479,000
Inventory
577,000
476,000
Plant and equipment, net
794,000
793,000
Investment in Buisson, S.A.
401,000
427,000
Land (undeveloped)
255,000
249,000
Total assets
$
2,496,000
$
2,556,000
Liabilities and Stockholders'
Equity
Accounts payable
$
389,000
$
344,000
Long-term debt
971,000
971,000
Stockholders' equity
1,136,000
1,241,000
Total liabilities and stockholders' equity
$...
Calculate the ratio of the following: Marnus Inc Income Statement For the Financial Year ended 12/31/19...
Calculate the ratio of the following:
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Financial ratios computed for Whittaker Inc. include the
following:
Current ratio
1.9
to 1
Acid-test ratio
1.4
to 1
Debt/equity ratio
2.0
to 1
Inventory turnover
3.6
times
Accounts receivable turnover
5.4
times
Times interest earned
4.60
times
Gross profit ratio
40
%
Return on investment
7.17
%
Earnings per share
$
3.40
All sales during the year were made on account. Cash
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The balance...
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Financial ratio question - Interpretation 1 Current Ratio: How does the quick ratio differ from the current ratio? Days in inventory [inventory age] : what is relationship between Inventory age [ inventory / ( Annual COGS/365)] and the “ Liquidity condition” Inventory Turnover [COGS/inventory]: given its relation to inventory age, why use COGS instead of Sales? Day In Receivables [average collection Period ] = A/Rs / (annual Credit Sales /365) Why only credit sales are included in calculating this ratio?...
The following information is for ABC Ltd. for the last
financial year
Current Ratio:
5
Quick
Ratio:
1.8
Inventory Turnover: 7
Total Current Assets: $340,000
Cash:
$43,000
COGS = 80% of Sales
Required:
What were the total sales for the year?
How many day’s sales were outstanding in Accounts
Receivable?
This question has two unrelated parts A. The following ratios are reproduced from Morningstar for four Australian companies in the same industry. Comment briefly on their performance from...
An analysis of last year's financial statements produced the following results. 3.6 78.0 days Current ratio Quick ratio Average collection period Inventory turnover Fixed asset turnover Operating profit margin Net profit margin Return on assets Return on equity Debt ratio Times-interest-earned Payout ratio 11.946 6.146 8.996 13.7% 35.5 9.3% 41.4% Use the following data to compute the comparable financial ratios for next fiscal year. Has the film's financial position changed Current assets Cash and short-term investments Accounts receivable Inventory Plant...
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Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
Financial data for Joel de Paris, Inc., for last year follow:
Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance
Assets Cash $ 137,000 $ 128,000 Accounts receivable 334,000 480,000
Inventory 578,000 480,000 Plant and equipment, net 881,000 882,000
Investment in Buisson, S.A. 398,000 430,000 Land (undeveloped)
247,000 252,000 Total assets $ 2,575,000 $ 2,652,000 Liabilities
and Stockholders' Equity Accounts payable $ 384,000 $ 340,000
Long-term debt 984,000 984,000 Stockholders' equity 1,207,000
1,328,000 Total liabilities and stockholders' equity $...
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance Sheet
Beginning
Balance
Ending
Balance
Assets
Cash
$
129,000
$
132,000
Accounts receivable
340,000
479,000
Inventory
577,000
476,000
Plant and equipment, net
794,000
793,000
Investment in Buisson, S.A.
401,000
427,000
Land (undeveloped)
255,000
249,000
Total assets
$
2,496,000
$
2,556,000
Liabilities and Stockholders'
Equity
Accounts payable
$
389,000
$
344,000
Long-term debt
971,000
971,000
Stockholders' equity
1,136,000
1,241,000
Total liabilities and stockholders' equity
$...
Calculate the ratio of the following:
Marnus Inc Income Statement For the Financial Year ended 12/31/19 $150,000,000 ($130,000,000) $20,000,000 12/31/18 $140,000,000 ($123,000,000) $17,000,000 $9,000,000 $10,000,000 Statement values in 000's Period Ending: Total Revenue (Net Revenue) Cost of Revenue (COGS) Gross Profit Operating Expenses Sales, General and Admin. Other Operating Items Total Operating Exp Operating Income (or loss) Interest Expense Earnings Before Tax Income Tax Net Income (or loss) $0 $0 | ($9,000,000) $11,000,000 ($1,000,000) $10,000,000 ($5,000,000) $5,000,000 ($10,000,000) $7,000,000 ($800,000)...
Financial ratios computed for Whittaker Inc. include the
following:
Current ratio
1.9
to 1
Acid-test ratio
1.4
to 1
Debt/equity ratio
2.0
to 1
Inventory turnover
3.6
times
Accounts receivable turnover
5.4
times
Times interest earned
4.60
times
Gross profit ratio
40
%
Return on investment
7.17
%
Earnings per share
$
3.40
All sales during the year were made on account. Cash
collections during the year exceeded sales by $13,000, and no
uncollectible accounts were written off.
The balance...
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